Avista Corp (AVA) Q4 2025 Earnings Call Highlights: Strong Earnings Growth and Strategic Investments

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Thu, February 26, 2026 at 8:02 AM GMT+9 4 min read

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**Consolidated Earnings (2025):** $2.38 per diluted share, up from $2.29 in 2024.

**Non-GAAP Utility Earnings (2025):** $2.55 per diluted share, up from $2.38 in 2024.

**Consolidated Earnings (Q4 2025):** $0.87 per diluted share, up from $0.84 in Q4 2024.

**Non-GAAP Utility Earnings (Q4 2025):** $0.88 per diluted share, down from $0.89 in Q4 2024.

**Capital Expenditures (2025):** $553 million.

**Expected Capital Expenditures (2026):** $585 million.

**Long-term Debt Issued (2025):** $120 million.

**Common Stock Issued (2025):** $78 million.

**Expected Long-term Debt Issuance (2026):** Approximately $230 million.

**Expected Common Stock Issuance (2026):** Up to $90 million.

**Dividend (2025):** Raised to $1.97 per share.

**Non-GAAP Utility Earnings Guidance (2026):** $2.52 to $2.72 per diluted share.

**Long-term Earnings Growth Expectation:** 4% to 6% from the midpoint of 2025 consolidated earnings guidance.

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Release Date: February 25, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Avista Corp (NYSE:AVA) reported an increase in consolidated earnings to $2.38 per diluted share in 2025, up from $2.29 in 2024.

The company successfully filed a four-year rate plan with the Washington Utilities and Transportation Commission, aiming to provide greater stability and predictability.

Avista Corp (NYSE:AVA) announced significant projects from its RFP process, including a 100-megawatt battery energy storage system and a 200-megawatt power purchase agreement for wind energy.

The company received a significant deposit from a data center developer, indicating potential large load growth in its service territory.

Avista Corp (NYSE:AVA) raised its dividend to $1.97 per share, marking the 24th consecutive year of dividend increases, reflecting a compound annual growth of over 5%.

Negative Points

Avista Corp (NYSE:AVA) faced a $0.07 per share decrease in earnings due to a one-time adjustment related to coal strip investments.

The company experienced a negative impact from the energy recovery mechanism, expected to be $0.10 at the midpoint.

A large industrial customer plans to return to procuring power independently, resulting in a one-time decrease of $0.12 in 2026 non-GAAP utility earnings guidance.

The company anticipates pressure on its utility ROE in 2026, expecting to be in the low to mid-8% range due to structural lag and customer departure.

Avista Corp (NYSE:AVA) plans to issue approximately $230 million of long-term debt and up to $90 million of common stock in 2026, reflecting higher capital expenditures and liquidity needs.

 






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Q & A Highlights

Q: How is Avista Corp planning to sequence its financing decisions in 2026, considering multiple moving pieces such as customer departure and the Washington rate case? A: Kevin Christie, CFO, explained that the 2026 guidance incorporates the base plan, including capital investment. Any additional investment opportunities would require reassessment of debt and equity issuance. Avista issues equity through a periodic offering program, and any significant investment opportunity might lead to exploring other mechanisms.

Q: What is the internal threshold for committing to the $350 million incremental CapEx for integrating a new large load customer, and how will existing customers be protected if the load doesn’t materialize? A: Kevin Christie stated that after receiving a significant deposit from the potential customer, the next step is moving towards an MOU. Avista would ensure existing customers are not negatively impacted by having collateral and security in place to protect against the customer walking away.

Q: For the potential $350 million upside CapEx, should it be modeled as 50-50 debt and equity, and would hybrids be considered? A: Kevin Christie confirmed that the spending would likely start in earnest in 2027-2029, with a 50-50 capital structure approach. Hybrids would be considered if there is additional capital beyond the base plan.

Q: Is Avista considering monetizing its non-regulated businesses, which have an equity interest value of $148 million, given the shift in reporting focus on the utility? A: Kevin Christie acknowledged the focus on utility and mentioned that Avista would look to monetize non-regulated investments if there is an opportunity for a material gain, which would help reduce equity issuance.

Q: Does the 4% to 6% long-term EPS CAGR correlate to the 5% rate base CAGR, and would a 12% hypothetical rate base CAGR be accretive to the EPS growth? A: Kevin Christie explained that the 5% CAGR on capital investment is conservative, with significant increases expected from RFP investments. A 12% rate base CAGR would help reach the top end of the 4% to 6% EPS growth range, potentially exceeding it with additional investment opportunities.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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